SpringHill Suites by Marriott Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$12,999,500 - $37,996,900
Franchise Fee
$75,000
Total US Locations
561
Business Summary
SpringHill Suites by Marriott hotels are select-service hotels designed to provide high-quality and spacious accommodations primarily to business travelers, leisure guests, groups, and families. These hotels typically feature between 80 and 120 suites and are located in urban or suburban areas. SpringHill Suites offer complimentary hot breakfast, a branded pantry concept called 'The Market,' an exercise room, guest laundry facilities, and often an optional bar and meeting rooms. Franchisees are granted a non-exclusive right to establish, develop, and operate a SpringHill Suites by Marriott hotel at an approved location, adhering to the brand's comprehensive system and designated guest experiences.
Corporate History
MIF, L.L.C., the franchisor for SpringHill Suites by Marriott, was established in 2012 as a Delaware limited liability company and operates as a subsidiary of Marriott International, Inc. The SpringHill Suites hotel concept itself has a longer history, with its predecessors owning and managing hotels since 1995. The brand began offering franchises for SpringHill Suites hotels in 1996. The concept was originally known as Fairfield Suites and was rebranded to SpringHill Suites by Marriott in 1998. As of December 31, 2024, MIF, L.L.C. and its affiliates operated 22 SpringHill Suites hotels in the United States and Canada.
Financial Overview
Investment Range
$12,999,500 - $37,996,900
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$150,000
Royalty %
5.5%
Marketing %
2.5%
Equipment Costs (Low)
$11,671,100
Equipment Costs (High)
$34,894,600
Working Capital
$395,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
SpringHill Suites, through its franchisor MIF, L.L.C., appears to be in a strong financial position. The company has no record of impairment charges, legal contingency accruals, or any concerns about its ability to continue as a going concern, as confirmed by its independent auditors who issued an unqualified opinion on the financial statements. MIF, L.L.C. reported positive net income for the fiscal years ending December 31, 2024, 2023, and 2022, with a net income of $63,830,000 in 2024. The company's total assets significantly increased from $409,712,000 in 2023 to $477,080,000 in 2024, with total liabilities remaining low relative to assets. MIF, L.L.C. also has substantial amounts due from related parties, indicating healthy intercompany financial flows. The company's strong member's equity further underscores its robust financial health.
Financing Details
SpringHill Suites generally does not offer direct or indirect financing to franchisees or guarantee their loans or other obligations. However, under specific, limited circumstances and at its sole discretion, the franchisor may provide credit support in the form of a contingent guaranty for a portion of a loan from a third-party lender, or may make a mezzanine loan. The terms and conditions for such assistance are not determined in advance and would depend on factors like market opportunities, hotel size and location, economic conditions, the franchisee's development costs, and their commitment to system growth. Additionally, the franchisor offers a modular construction development incentive program, providing 'Key Money' payments ranging from $150,000 to $250,000 to franchisees who utilize approved modular construction methods. This incentive is a payment to the franchisee, not a loan, but an unamortized portion may become repayable if the franchise agreement terminates early.
Performance Metrics
Total US Locations
561
Franchised Units
539
Corporate Units
22
Avg Square Footage
64,500
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
16
Litigation Summary
SpringHill Suites, as part of Marriott, has been involved in significant legal proceedings. These include multiple ongoing class-action lawsuits consolidated in federal court (MDL) regarding a 2018 data security incident, with appeals on class certification still pending. The City of Chicago also filed a separate lawsuit concerning the same data security incident, with a trial scheduled for November 2025. Additionally, there were administrative investigations by regulatory authorities in the U.S., Canada, Australia, and Turkey related to data security, with a Turkish fine still under appeal. Marriott is also defending against investigations and a lawsuit from the District of Columbia regarding resort and amenity fees, with a trial set for November 2025. In addition to these, there are two class-action lawsuits filed in February and March 2024 against Marriott and other hotel companies, alleging unlawful information sharing and price-fixing under U.S. antitrust laws. A civil suit from January 2022 alleging negligence resulted in a $16 million jury verdict against Marriott and a franchisee in October 2024, which is currently under appeal. Marriott has also initiated several recent lawsuits against franchisees for unpaid fees or breach of contract, most of which were settled or resulted in awards in Marriott's favor. Other historical legal matters, such as a class action related to a 2020 property system incident, an arbitration with hotel owners, and two class actions in Puerto Rico concerning resort fees, have been concluded.
Bankruptcy History
SpringHill Suites, through its franchisor entity MIF, L.L.C., has no bankruptcy history to disclose.
Agreement Terms
Initial Term
20 years
Renewal Conditions
The FDD states that the SpringHill Suites by Marriott franchise agreement is not renewable. SpringHill Suites by Marriott franchisees should not expect to be granted any right to operate the hotel under the brand after the expiration of the initial term.
Training & Support Program
Franchisor Assistance
SpringHill Suites provides comprehensive assistance to its franchisees, starting with pre-opening support. This includes making design and construction criteria available, reviewing plans for compliance with brand standards, assessing hotel construction progress, and providing input for procuring operating supplies and furniture, fixtures, and equipment. The franchisor also conducts hotel readiness visits and provides staff training, including management and executive training, pre-opening on-site task force training, and virtual options. For site selection, the franchisor reviews proposed locations for suitability. Post-opening, SpringHill Suites offers ongoing consultation from representatives, provides access to its reservation system, works to preserve and protect trademarks, and ensures operating standards are available. Franchisees also benefit from participation in the Marketing Fund, local advertising guidance, and access to Marriott Sales Organizations, including mandatory participation in the Global Sales Organization. Technology support is extensive, covering various mandatory and optional computer systems like Property Management Systems, Opportunity Management Systems, Guest Experience Platforms, Point-of-Sale systems, Reservation and Yield Management systems, the Marriott Communications Network, Continent Field Support, Digital Guest Services, Hotel Lock Systems (with mobile key), Mobile Device and Application Management, Guestroom Entertainment Platforms, Lobby PCs, Associate Alert Devices, Intranet/MDash, EV Charging Stations guidance, Information Security Managed Detection and Response, and the Marriott Environmental Sustainability Hub (MESH), as well as residential software for multi-component hotels. Ongoing training is available through a learning and development bundle, General Managers Conferences, brand awards, and various optional leadership training programs.
Initial Training Hours
112
Training Location
Franchisor designated locations, on-site at the hotel, and virtual (web-based) platforms.
Ongoing Support
After opening, SpringHill Suites franchisees receive continuous support and assistance. This includes ongoing consultation from franchisor representatives available at designated offices or directly at the hotel for design and operational matters. The franchisor makes its comprehensive operating standards continuously available to franchisees and offers various training programs for hotel and management personnel, including a required annual General Managers Conference and optional leadership development programs. SpringHill Suites actively directs the Marketing Fund activities to promote the brand and provides guidance for franchisees' local advertising efforts. Franchisees are required to participate in various sales and support services through Marriott Sales Organizations, including mandatory participation in the Global Sales Organization. The franchisor also offers an ongoing learning and development bundle covering required training programs, annual brand awards, and an Audit Program/GSS Improvement program if a hotel falls into the 'Red Zone' for quality assurance. Furthermore, franchisees receive support for computer systems, including maintenance, updates, and access to various proprietary electronic systems for reservations, property management, and other operational functions.
Franchise Requirements
Ideal Candidate Profile
SpringHill Suites looks for franchisees with strong managerial and operational experience, skills, and capabilities, along with a business philosophy that aligns with Marriott's operating standards. Candidates are carefully evaluated for their financial capacity, character, and track record. To be considered a Qualified Person, prospective franchisees and their principals must not have a history of serious criminal convictions, be associated with any competitors, have engaged in conduct detrimental to the brand, or have been involved in material civil litigation with Marriott or its affiliates.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
absentee-allowed
Territory Type
Non-Exclusive
Territory Size Requirements
SpringHill Suites by Marriott franchisees do not receive an exclusive territory. If a territory is granted, it will be non-exclusive and will apply only to SpringHill Suites by Marriott hotels for a duration less than the entire term of the franchise agreement. The specific size and geographical boundaries of any granted territory will depend on the market in which the site is located. A territory may be defined as a radius around the hotel or delineated by streets, highways, or other geographical boundaries. The grant of a territory does not imply any right for the franchisee to develop additional hotels or enlarge the approved hotel within that territory.
Staffing Notes
SpringHill Suites requires that the hotel be staffed with suitable and qualified individuals, with general managers and other managers dedicating their full time to the hotel's management and operation, including employee supervision. All employment decisions for the hotel, such as hiring, are solely the responsibility of the franchisee or their approved management company, not the franchisor. The franchisor does not control these employment policies but expects to be informed whenever a general manager is hired. Training programs are provided for hourly associates, management-level associates, and general managers, indicating these are typical roles within the hotel's structure.